Treasury, IRS Propose Rule to Change Partnership Reporting (1)

The Treasury Department and IRS on Monday proposed a rule that would modify reporting requirements for sales or exchanges of certain interests in partnerships owning inventory or unrealized receivables.

The proposal (REG-108822-25, RIN 1545-BR54) would remove a rule finalized in November 2020 that requires a partnership to give a transferor partner information about an exchange to submit with their income tax return.

The IRS had revised Form 8308 after the 2020 rule, making the deadline to report the information Jan. 31 the following year.

But Treasury and IRS received comments after the form was revised that partnerships weren’t ...